There are may be no respite for Nigeria and other oil producing countries soon as US crude today fell to $39.89 per barrel today. Oil prices fell on U.S. crude dipping below $40 per barrel, retreating from early gains amid a persistent global glut of crude and refined fuel.

Brent crude futures LCOc1 were down 20 cents at $43.94 a barrel by 1411 GMT.

Rising U.S. stockpiles served as the most visible evidence of oversupply in oil markets.

Goldman Sachs said on Thursday there remained a downside risk to oil prices "as storage utilization continues to climb". The bank added that "we don't believe that current prices present an appealing entry point".

"Ultimately the focus will return to the balance of demand relative to supply, and until inventory data provides evidence of a tighter supply, the path of least resistance will be lower," CMC Markets chief market analyst Michael Hewson said.

International benchmark Brent is down nearly 12 percent this month and 24 percent this year, having slumped from as high as $115 in 2014.

Brent has not closed higher for two consecutive days since early October.

U.S. crude CLc1 last traded down 64 cents at $40.11, having touched $39.89, the lowest since August. The contract fell below $40 for the first time since August on Wednesday.

Traders are preparing for another downward turn in prices by March 2016, market data suggests, as what is expected to be an unusually warm winter dents demand just as Iran's resurgent crude exports hit global markets after sanctions end.

U.S. crude inventories rose by 252,000 barrels last week to 487.3 million barrels, close to record highs, according to the Energy Information Administration, highlighting that more oil is being produced than is needed.

Because of the glut, producers are scrambling to offer discounts in an effort to defend market share against their competition.

OPEC's second-biggest producer, Iraq, has sold some crude grades for as little as $30 a barrel, trade sources said, acting as a further drag on futures.

Big oil suppliers have started requiring prepayment when selling crude and refined products to Venezuela's PDVSA, a bid to curb potential risks from the state-run company's cashflow woes, sources involved in the deals told Reuters.


http://believeafrica.net/economic-woes-loom-as-crude-price-fell-below-p721-92.htm

And the influx of bad news continues, unabated chai!!.

What? I just hope it will...

To think some persons are still comparing the Buhari govt to a govt that ran on average oil income of $108/barrel alongside a average borrowing of N1Trillion/yr is disheartening. We should be glad we have someone who will take corruption head on and not one who would attempt to tax people more, remove subsidy, privatise NNPC, and borrow more money.
APC victory with Buhari as leader is a timely intervention indeed.

Wheever I see this oil price drop news, first thing that comes to my mind is : if the current president were to be one of the past corrupt president, what would have been the state of Nigeria by now. It could have been more Worse than what we have now....

Is crude oil still selling?

All these bad news in just a day for PMB!!! Buhari may need lots of sexual healing from Aisha tonight.

I'm expecting national address tonight followed with his written resignation first thing tomorrow morning.

[size=50pt]well, today may just be the sadest day for Nigerians in 2015[/size]

Standing5:
To think some persons are still comparing the Buhari govt to a govt that ran on average oil income of $108/barrel alongside a average borrowing of N1Trillion/yr is disheartening. We should be glad we have someone who will take corruption head on and not one who would attempt to tax people more, remove subsidy, privatise NNPC, and borrow more money.
APC victory with Buhari as leader is a timely intervention indeed.

I dey tell you!
Imagine having Jonathan and his cohorts in power in this situation, na die ooo.

Now the onus lies on the govt to source solution away from oil very fast. All our Ministers must be united to make sure Nigerians get out of this. We believe in them, that's why we voted them.

The road continues to narrow more and more for the government of the day in Nigeria. The only way for Buhari led government is to do what may not be politically unpopular:
1. Rigorously pursue recovery of looted funds up to $36billions
2. Retire top civil servants from Directors upward that has been in service for at least 28years and suspend rich perks for all top civil servants and political appointees e.g. holiday, medical abroad
3. Review downward by 50% all benefits to political appointees
4. Carry out a comprehensive staff audit of all government ministries, depts etc and pensioners
5. Set budget benchmark at $25 in 2016
6.Immediately begin direct importation of fuel by govt. and sell not above =N40 a litre for petrol and allow states to fix minimum wage not below =N15,000.00 after complying with 2-4 above for lower and middle class workers and at 25% reduction from Director upward.
7. Expand tax revenues to the informal sector and maintaining the 5% VAT while allowing states to rake in from the informal sector including every shop owner.
8. Allow all government staff without at least OND take 2more years and go or pay them off and bring in trained graduates as replacements

My take

^^ the guy above me just said practically nothing!

baralatie:
^^
the guy above me just said practically nothing!

Reforms don't always sound good but sometimes needful.its like business not moving well in your shop, won't you cut off all the evening ishiewu with beer off? For Nigeria to stay afloat reforms must be conducted.

mandarin:


Reforms don't always sound good but sometimes needful.its like business not moving well in your shop, won't you cut off all the evening ishiewu with beer off? For Nigeria to stay afloat reforms must be conducted.

the issues are clear about the economy and the solutions are also clear but those things he wrote is called "provocation of the economy" some things like the repegging of oil price$25 is good but what next?